It is known to provide a garment with a beverage holder as disclosed in U.S. Design Pat. Nos. D600,877 and D570,577. Such garments provide the advantage of allowing the wearer to hold onto a beverage container while keeping his/her hands free for other purposes. While the foregoing patented designs may serve their intended purpose, some individuals may prefer a garment having a beverage holder that is hidden or inconspicuous when not in use such that the garment appears to be an ordinary or conventional garment without a beverage holder. Furthermore, the foregoing patented designs do not appear to disclose a beverage holder that is insulated. It is therefore desirable to provide a garment having an insulated beverage holder that is hidden or inconspicuous when not in use.